February 16, 2025

Holistic Pulse

Healthcare is more important

How Medical Device Sales Can Face The Challenges

How Medical Device Sales Can Face The Challenges

Greg Caesar, Senior Director and Partner at Medfluence Advisors, a bespoke healthcare consulting firm.

The healthcare landscape has changed dramatically since I first entered a surgical suite in the early 2000s. Over the past two decades, with the rise of corporate entrants into healthcare—including the growth of integrated delivery networks (IDNs)—medical device manufacturers and their sales professionals have had to adapt their strategies to address new challenges while meeting the needs of today’s multi-stakeholder healthcare ecosystem.

Historical Context And Shifting Landscape

On my first day on the job as a medical device representative, I assisted a senior sales rep in resolving an issue with an endoscopic video camera system (I watched). In 2003, sales representatives were often seen as problem solvers and solution providers, offering expertise that extended well beyond the glossy sales aids marketing created for new products. Relationships and product knowledge had customers reaching out to them when they were looking to buy new capital products. Sales representatives thought critically about which surgeons they should present with new products.

Skill, willingness to change, current product satisfaction and competitive threats all factored into who, where and when a new product would be introduced to an existing or new surgeon. We knew if a product or procedure fit a surgeon’s liking, we would have work to do with procurement to make it make sense. But if the doctor really liked the product, it was better for the patient, and we priced it appropriately, we could win the business. IDNs—self-contained healthcare ecosystems established in the 1970s—began to reshape the industry.

Today, nearly 80% of physicians in the U.S. work for hospitals or other corporate entities, a stark contrast to the independent practitioners of the past. This shift has significantly impacted the influence of individual surgeons on product choices, as hospitals and corporations now wield greater control over purchasing decisions.

Challenges In The New Healthcare Ecosystem

1. Reduced physician autonomy: Most doctors today are employees with limited influence on product selection. The corporatization of healthcare has challenged medical device organizations to shift strategies for expanding utilization.

2. Value analysis committees (VACs): Initially designed to vet new technology and limit redundant products, VACs now present significant barriers to entry for new medical devices. They require extensive paperwork, data and cost-justification, often favoring the status quo.

3. Value-based care and procurement: Hospitals increasingly emphasize clinical and economic value in their investments. Sales professionals must present value models that resonate with procurement and finance departments to accompany their clinical proof sources while aligning with corporate priorities.

4. Multi-stakeholder approach: Success is no longer determined solely by surgeon support. Sales and marketing must work to generate messages that address the needs of various stakeholders, including care providers, finance departments and corporate decision-makers.

5. Industry consolidation: The medical device industry is experiencing increased mergers, acquisitions and partnerships like the recent acquisition of Acclarent by Integra LifeSciences and Stryker’s very recent announcement to acquire Vertos Medical Inc. (Disclosure: I previously worked for Stryker.) Large healthcare organizations are bypassing local preferences, communicating directly with medical device manufacturers’ sales departments to secure the greatest value and align with corporate initiatives.

Strategies For Success In The New Ecosystem

To thrive in this evolving landscape, medical device sales professionals should:

1. Study annual 10-K reports: Familiarize yourself with the priorities of your top facilities by reading their publicly available annual reports. This knowledge will help you equip key influencers with information that speaks to corporate decision makers’ objectives.

2. Understand value-based procurement: Don’t assume this means “cheaper.” Engage with procurement departments, understand their goals and present products that align with their priorities while demonstrating both clinical and economic benefits.

3. Present a holistic value proposition: Equip practitioners with clinical, strategic and financial benefits of your device before submitting VAC requests. Include a detailed list of products it replaces and offer to accompany them to the VAC meeting. Be sure your product champion attends the VAC meeting.

4. Align with organizational goals: Regularly consult with your business’s strategic sales partners to understand your organization’s goals and limitations. Work together to craft solutions that maximize value for both your company and the prospective customer.

5. Navigate GPO relationships: Decode the best group purchasing organizations (GPOs) for your device to succeed and modify your targeting accordingly.

Balancing Perspectives

As you adapt to the new healthcare ecosystem, remember the perspective of healthcare providers and patients:

• Physicians: Many doctors express frustration with reduced autonomy in decision making. Sales professionals should empathize with this challenge and focus on how their products can enhance patient care within the constraints of corporate systems.

• Patients: The ultimate beneficiaries of medical devices often have limited say in product selection. Sales strategies should emphasize how devices improve patient outcomes and quality of life, as these factors can influence corporate decision making.

The Future Of Medical Device Sales

As the healthcare landscape continues to evolve, successful medical device sales professionals will need to:

1. Develop a deep understanding of healthcare economics and value-based care models.

2. Build relationships across multiple levels of healthcare organizations, from clinicians to C-suite executives.

3. Leverage data analytics to demonstrate the long-term value of their products.

4. Stay agile and adaptable, ready to pivot strategies as the industry continues to change.

The medical device sales landscape has transformed dramatically over the past two decades. Corporate healthcare, IDNs and GPOs have created new challenges, requiring sales professionals to adapt their strategies and speak to a multi-stakeholder ecosystem. Success in this new environment demands a holistic approach that addresses clinical, economic and strategic value propositions.

Despite the evolution and increased pressure to meet quotas, many sales professionals have been able to adapt and find fulfillment in the modern healthcare environment. While market volatility and performance pressure can lead to job stress and turnover, opportunities to work with cutting-edge technology and earn financial rewards are still available for those willing to put in the effort to adapt.

Remember, our fundamental purpose in the healthcare business is to equip care providers to improve patients’ lives. By balancing corporate priorities with the needs of healthcare providers and patients, medical device sales professionals can navigate this complex landscape and continue to drive innovation in patient care.


Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?


link

Leave a Reply

Your email address will not be published. Required fields are marked *

Copyright © All rights reserved. | Newsphere by AF themes.